McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.70 percent, with an average 0.6 point, for the week ending May 1, 2003, slipping from 5.79 percent last week. Last year at this time, the 30-year FRM averaged 6.78 percent.

The average for the 15-year FRM this week is 5.03 percent, with an average 0.6 point, down from last week's average of 5.12 percent. A year ago, the 15-year FRM averaged 6.26 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.74 percent this week, with an average 0.6 point, down slightly from last week's average of 3.79 percent. At this time last year, the one-year ARM averaged 4.75 percent.

"Mortgage rates dropped for the third week in a row, bringing rates closer to the 40-year record low that was set in March of this year," said Frank Nothaft, Freddie Mac chief economist. "As a matter of fact, mortgage rates have fallen enough over the last few months that families who refinanced in 2001 are now able to do so again, according to the results of Freddie Mac's quarterly refinance review released yesterday.

"Given the current low rates and the robust level of housing construction it appears the housing industry will continue to flourish well into the summer."

Published: May 2, 2003

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